After crossing yet another historic milestone, the Gold market has experienced a fascinating journey. Last Friday, the price of Gold reached a historic high of $3004.91 per ounce.

Although many Analysts, investors, and traders have eagerly anticipated Gold achieving this unprecedented feat, most actually expected it to reach the target only in the second half of this year. This shows how surprising the strong momentum of Gold is.

In October last year, Kitco News attended the annual Precious Metals conference organized by the London Bullion Market Association, where representatives predicted that by October 2025, the price of Gold would rise to $2941 per ounce. Even though it was clear at the time that Gold was in a long-term Bullish market, few openly discussed that the price of Gold might reach $3000 per ounce.

Less than a month after the conference ended, the upward path of Gold prices encountered an obstacle when former President Trump won the election, and his 'America First' policy brought new upward momentum for the US dollar.

However, the time for Gold to consolidate was not long, as the new year brought new upward momentum. In the first three months of this year, the price of this precious metal soared by more than $300, with an increase of over 13% for the year.

As key price levels were breached one after another, Bullish sentiment continued to heat up. The price of Gold rallied after breaking the preliminary resistance level of $2700, while the psychological barrier of $2800 was just a minor obstacle in this wave of growth. Many Analysts believe that the consolidation over the past four weeks was merely a brief respite for the market before a new round of breakout activity.

On Monday, the price of Gold retreated from last Friday's historic high, but some Analysts believe there is still room for it to rise in the short term, while others think it might face profit-taking.

One particularly interesting point about the price of Gold rising to $3,000 per ounce is that this is just another phase in what analysts believe to be a larger rally. In recent weeks, several analysts have predicted that inflation-adjusted Gold prices will reach the historical high set in January 1980.

Independent Precious Metals Analyst Jesse Colombo stated on Substack, "I think this is just a pause at a major resistance level and psychological price point. Currently, the upward trend is very solid, and I expect there may be another attempt to break through $3,000 this week."

Analysts from TD Securities pointed out that testing the $3,000 level will mark the third major bull market in Gold's modern history. They added that while market risks are increasing, the rally is not yet over.

The head of commodity strategy at the bank, Bart Melek, stated last week that he views any pullback in Gold prices as a buying opportunity and expects that this year Gold will establish a new trading range above $3,000 per ounce.

Forex.com senior market strategist James Stanley noted that it is hard to predict how high Gold prices can rise before profit-taking triggers a larger sell-off. He does believe there is still some upward momentum for Gold. "I don’t want to directly short this market right now because it could potentially continue to rise, perhaps staying above $3,000 for a while longer," he said.

Last Thursday, commodity analysts at Macquarie raised their forecast for Gold prices in the third quarter of this year to $3,500, up from their original mid-year target of $3,000.

Reasons for remaining Bullish on Gold.

Even when prices are high, a significant reason Analysts remain Bullish on Gold is that the driving forces behind price movements are not solely technical upward momentum. Currently, there is no evident 'fear of missing out' (FOMO) sentiment in the gold market, which indicates that investors are just beginning to enter this market.

However, North American Gold-backed ETFs have experienced the largest monthly Inflow since July 2020.Index FundDespite this, the Gold holdings of ETFs are still approximately 20% lower than the peak in 2020, when Gold prices were $1000 lower than they are now.

Alex Tsepaev, Chief Strategy Officer of B2Prime Group, stated: 'Gold's historical role makes it a preferred choice amidst ongoing geopolitical tensions and economic uncertainties.safe-haven assetThe constant increase in Inflows to Gold ETFs is primarily due to concerns that escalating tariff disputes might lead to disruptions in Global trade, as well as the various conflicts we are currently witnessing.'

He added: 'Institutional demand, including ETF Inflows and record central bank purchases, further supports the momentum of Gold prices, breaking through the psychologically significant $3000 level, which may pave the way for a challenge at $3200.'

George Milling-Stanley, the Chief Gold Strategist at State Street Global Advisors, stated in an interview that due to increasing economic uncertainty and geopolitical turmoil, investors are turning to Gold as a safe-haven asset and a tool to combat inflation.

Some Analysts pointed out that since the stock market is still hovering on the edge of a pullback, the trend of funds fully shifting to Gold has not yet begun.

Colombo indicated that a weak stock market may continue to support the rise of Gold. He stated, "The trend of funds moving massively from the stock market to Gold has just begun, which will provide strong momentum for a Gold bull market in the coming years."

Although there is still room for Gold to rise, Stanley expressed the hope of seeing some consolidation in the coming weeks. He also added that the risk for Gold lies in its price continuing to rise and triggering a massive sell-off.

According to some Analysts, the recent surge in Gold to $3,000 per ounce is similar to the rise in 2011, which exceeded the then-record of $1,900 per ounce. At that time, after three years of gains, investors took profits, leading to a significant market decline.

Other Analysts disagree with this viewpoint, believing that a key difference now compared to 2011 is that economic uncertainty has only just begun. Meanwhile, ongoing geopolitical turmoil continues to support Gold as an important safe-haven asset.

Could the Federal Reserve also help Gold soar?

Some Analysts stated that if the Federal Reserve issues dovish comments at this week's monetary policy meeting, Gold could welcome another round of increases.

Since the beginning of this year, the Federal Reserve has maintained a neutral tone, but some economists indicate that the worsening economic data and concerns about a recession may prompt it to adopt a more dovish stance. Currently, the market expects at least two rate cuts this year.

Ricardo Evangelista, Senior Analyst at ActivTrades, stated: "Trump's aggressive tariff stance puts pressure on the economic outlook, undermines growth expectations, and affects risk assets such as stocks, with major indices erasing gains made after the election. Meanwhile, the lower-than-expected U.S. inflation data released earlier last week indicates that growth in the world's largest economy is slowing down, which intensifies expectations for further rate cuts by the Federal Reserve. As risk appetite declines and the so-called 'Trump trade' unravels, Gold may still have further upside potential."

He also added: "Next week'sFederal Open Market Committee(FOMC) meeting will be key in shaping market expectations for Federal Reserve policy. Given the inverse correlation between Gold and the dollar, this is likely to become a crucial factor influencing Gold's trend."